Business owners face penalties, rising prescription costs

A total of 8.6 million people have enrolled for healthcare benefits from the Federal Government since late last year.

Between Nov. 1, 2015 and Jan. 31, it’s open season for anyone to go online, or to a healthcare broker, to choose a new health plan through the federal healthcare marketplace.

In Virginia, nearly 400,000 people so far have signed up for federal healthcare benefits during the current enrollment period. It’s a far cry from states like Florida which had 1.5 million people, or Texas with 1.1 million, according to government statistics.

The federal health care mandate, commonly called Obamacare, changed the way U.S. residents get and keep medical insurance. It’s also lead to major changes for small businesses that provide healthcare coverage for their employees.

“It is supposed to be an easy thing to do, but it is not easy,” said Diana Paguaga, a healthcare broker.

It’s her job to navigate the processes and paperwork — as many as 30 forms per employee — to help small businesses secure healthcare coverage for their employees.

“The really important thing is to become very, very friendly to your accountant,” said Paguaga. “There are too many forms to fill out, and without your accountant, you won’t make it.”

Paguaga spoke as part of a panel discussion Tuesday at Sentara Northern Virginia Medical Center devised by the Prince William Chamber of Commerce to help small business owners better understand the trappings of the federal health care system and to overcome them.

Apparently, there are a lot.

There are tax credits and special incentives for those whose income falls below the poverty rate. Through the online marketplace and, and SHOP healthcare portal for businesses, there are more than 40 plans to chose from in Prince William County alone, said Deepak Mapala, program manager for Enroll VA.

And then there are the penalties charged to those who choose not to purchase insurance.

“If the employee is not covered, the fine is $700 if you don’t have insurance. It’s not just an insignificant penalty anymore,” said Mapala.

Some people are exempt from paying penalties if they were uninsured for a short period, he added.

And then there is the rising cost of prescription medications, to which there is no ceiling. John DeGruttola works in sales at Optima Health and said doctors are capped about what they can charge for procedures but there is no cap for medication costs.

“What you’re seeing is a runaway train,” said DeGruttola.

About 1% of the total U.S. population is contributing to higher prescription drug costs. DeGruttola said drugs like Harvoni, a Hepatitis-C
treatment approved in November is one of the specialty medicines driving up the cost of prescription drugs.

The cost of prescription medications has risen 20% over the past year, he added.